Thursday, January 17, 2013

Fund Manager Fights Bank Over $Millions





According to WSJ a former managing director at Morgan Stanley Inc. MS +0.54% convicted of insider trading is appealing an order to return more than $10 million to the bank, arguing that the money was never the property of the Wall Street firm.

The appeal is the latest legal fight for Joseph F. "Chip" Skowron III, an ex-manager at FrontPoint Partners, a hedge fund formerly owned by Morgan Stanley. The more than $10 million at stake includes the bank's legal fees and a portion of Mr. Skowron's compensation while employed there.

Mr. Skowron is serving a five-year prison sentence in Pennsylvania after pleading guilty in 2011 to a single count of securities fraud and obstructing a Securities and Exchange Commission investigation.

An attorney for Mr. Skowron told an appeals court in Manhattan on Monday that a $10.2 million restitution order imposed by a lower court last March was flawed because it misinterpreted a federal law ……

More?  Go to http://online.wsj.com/article/SB10001424127887324595704578242152945970898.html?mod=googlenews_wsj

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